Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Free cash flow margin rose year-over-year as operating cash flow increased while revenue declined. Sequentially, free cash flow decreased as operating cash flow fell and capital expenditure rose.
- Revenue was lower than the prior quarter and the year-ago quarter. Operating cash flow increased year-over-year but decreased sequentially, while capital expenditure was higher than the prior quarter and similar to the year-ago quarter, resulting in free cash flow that was higher year-over-year but lower sequentially.
- Compared to the immediately preceding quarter, all key metrics weakened: revenue, operating cash flow, free cash flow, and margin were lower. Compared to the same quarter one year earlier, revenue was lower, but operating cash flow, free cash flow, and margin improved.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$695.0M
Trailing twelve-month free cash flow.
Quarter free cash flow
$127.0M
Free cash flow in the selected fiscal quarter.
Operating cash flow
$180.0M
Cash generated by operations before capital spending.
CapEx
$53.0M
Capital spending and related asset purchases.
FCF margin
7.5%
The share of revenue converted into free cash flow.
Cash flow trend
A short quarterly history shows whether FCF is scaling with revenue or only spiking for one period.
| Period | Revenue | Operating CF | CapEx | FCF | FCF margin |
|---|---|---|---|---|---|
| 2024-03-31 | $1.8B | $182.0M | $55.0M | $127.0M | 7.0% |
| 2024-06-30 | $1.9B | $340.0M | $81.0M | $259.0M | 13.6% |
| 2024-09-30 | $1.8B | $221.0M | $39.0M | $182.0M | 10.3% |
| 2024-12-31 | $1.7B | $180.0M | $53.0M | $127.0M | 7.5% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 65.8% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 3.1% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Year-over-Year Free Cash Flow Improvement
Operating cash flow was higher year-over-year, and capital expenditure remained stable, leading to a higher free cash flow and margin despite lower revenue.
This improvement in free cash flow margin reflects higher cash conversion relative to revenue.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Revenue was lower than the prior quarter and the year-ago quarter. Operating cash flow increased year-over-year but decreased sequentially, while capital expenditure was higher than the prior quarter and similar to the year-ago quarter, resulting in free cash flow that was higher year-over-year but lower sequentially.
Compared to the immediately preceding quarter, all key metrics weakened: revenue, operating cash flow, free cash flow, and margin were lower. Compared to the same quarter one year earlier, revenue was lower, but operating cash flow, free cash flow, and margin improved.
Monitor the relationship between capital expenditure and operating cash flow, as capital expenditure increased sequentially while operating cash flow declined.